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~~Revealed: Amber Rudd's father was involved in business she ran despite being declared unfit Revealed: Amber Rudd's father was involved in business she ran despite being declared unfit~~	Revealed: Amber Rudd's father was involved in business she ran despite being declared unfit
2016-12-05 18:25:11 UTC	2016-12-05 19:00:11 UTC (35 minutes later)
The extent of the involvement of Amber Rudd’s father in a business she was running in the late 1980s, despite him being declared unfit to be a director, has been disclosed by an accountant who worked for the family firm.	The extent of the involvement of Amber Rudd’s father in a business she was running in the late 1980s, despite him being declared unfit to be a director, has been disclosed by an accountant who worked for the family firm.
Speaking exclusively to the Guardian, Simon Spector, an accountant for the family’s investment vehicle Lawnstone, described how strategy would be discussed at Tony Rudd’s home in Kensington Square, London and his “raft of contacts” was used to help raise money.	Speaking exclusively to the Guardian, Simon Spector, an accountant for the family’s investment vehicle Lawnstone, described how strategy would be discussed at Tony Rudd’s home in Kensington Square, London and his “raft of contacts” was used to help raise money.
“I suppose there were meetings there because that was where Tony lived and it was one of the places they met to gather and discuss strategy and opportunities,” he said.	“I suppose there were meetings there because that was where Tony lived and it was one of the places they met to gather and discuss strategy and opportunities,” he said.
The home secretary’s father had been the subject of an excoriating 1988 Department of Trade and Industry (DTI) report, which dealt with his management of a separate company that ceased trading in 1981. The report said he was “either unaware or chose to ignore” the duties of a company director and was unfit to direct “any company whether private or public”.	The home secretary’s father had been the subject of an excoriating 1988 Department of Trade and Industry (DTI) report, which dealt with his management of a separate company that ceased trading in 1981. The report said he was “either unaware or chose to ignore” the duties of a company director and was unfit to direct “any company whether private or public”.
In light of the report’s criticisms and recommendations, in the past week the Guardian asked Amber Rudd how she had ensured that her father was not involved in the day-to-day running of Lawnstone. She declined to answer the question, as did her father.	In light of the report’s criticisms and recommendations, in the past week the Guardian asked Amber Rudd how she had ensured that her father was not involved in the day-to-day running of Lawnstone. She declined to answer the question, as did her father.
Instead, a spokesperson for the home secretary said: “It is a matter of public record that Amber had a career in business before working in politics.” There is no suggestion of any breach of any of the laws governing the directors of companies.	Instead, a spokesperson for the home secretary said: “It is a matter of public record that Amber had a career in business before working in politics.” There is no suggestion of any breach of any of the laws governing the directors of companies.
An analysis of the Lawnstone parent company’s accounts also indicate that it paid no corporation tax in any of the eight years for which the home secretary was its director.	An analysis of the Lawnstone parent company’s accounts also indicate that it paid no corporation tax in any of the eight years for which the home secretary was its director.
Amber Rudd became a director and shareholder of Lawnstone Limited at the age of 24 in January 1988, taking over from her sister and brother-in-law.	Amber Rudd became a director and shareholder of Lawnstone Limited at the age of 24 in January 1988, taking over from her sister and brother-in-law.
Seven months later, a report of a DTI investigation into Tony Rudd’s management of the separate Greenbank Trust found that he had systematically misused it and stripped it of its assets.	Seven months later, a report of a DTI investigation into Tony Rudd’s management of the separate Greenbank Trust found that he had systematically misused it and stripped it of its assets.
Having taken control of Lawnstone earlier that year, Amber Rudd restructured it with a new parent entity – The Lawnstone Group plc – owning the original Lawnstone Limited.	Having taken control of Lawnstone earlier that year, Amber Rudd restructured it with a new parent entity – The Lawnstone Group plc – owning the original Lawnstone Limited.
Despite the parent company’s registered office being in Lower Belgrave Street, its first three years of accounts were signed off at Tony Rudd’s Kensington Square home, despite him officially playing no role in the running or ownership of the company.	Despite the parent company’s registered office being in Lower Belgrave Street, its first three years of accounts were signed off at Tony Rudd’s Kensington Square home, despite him officially playing no role in the running or ownership of the company.
Spector, an accountant who served as The Lawnstone Group’s secretary in the early 1990s, said that although he was “in the background” and not responsible for the day-to-day running of the firm, Tony Rudd continued to provide advice to the firm.	Spector, an accountant who served as The Lawnstone Group’s secretary in the early 1990s, said that although he was “in the background” and not responsible for the day-to-day running of the firm, Tony Rudd continued to provide advice to the firm.
Lawnstone specialised in developing startups and identifying potential investors. “Amber would be finding investors, people. Companies that wanted investment would come to the advisers to try and find the people. Amber had connections in the City,” said Spector. “Tony, I think, still had a lot of connections in the City.”	Lawnstone specialised in developing startups and identifying potential investors. “Amber would be finding investors, people. Companies that wanted investment would come to the advisers to try and find the people. Amber had connections in the City,” said Spector. “Tony, I think, still had a lot of connections in the City.”
Under Amber Rudd, the company paid fees to her father “in respect of financial consultancy and public relations advice”, including a £24,500 payment in 1995 and smaller payments of £1,500 in 1996 and 1999.	Under Amber Rudd, the company paid fees to her father “in respect of financial consultancy and public relations advice”, including a £24,500 payment in 1995 and smaller payments of £1,500 in 1996 and 1999.
Richard Murphy, a chartered accountant and anti-tax avoidance campaigner, described the arrangement as “a red flag signal that there may be something wrong”, adding that the difference between an adviser and a director of a company was a distinction of which he had been conscious throughout his career.	Richard Murphy, a chartered accountant and anti-tax avoidance campaigner, described the arrangement as “a red flag signal that there may be something wrong”, adding that the difference between an adviser and a director of a company was a distinction of which he had been conscious throughout his career.
“There’s a difference between advising a company and going occasionally to a meeting, and being a regular attender at a meeting which takes place at your home, where you are paid,” he said.	“There’s a difference between advising a company and going occasionally to a meeting, and being a regular attender at a meeting which takes place at your home, where you are paid,” he said.
The Lawnstone Group’s accounts reveal that the company paid zero corporation tax under the home secretary’s control, despite reporting five-figure profits in its final four years.	The Lawnstone Group’s accounts reveal that the company paid zero corporation tax under the home secretary’s control, despite reporting five-figure profits in its final four years.
As a result of the losses acquired when the new company was incorporated, as well as further losses incurred between 1990 and 1993, the company paid no tax throughout its entire lifespan, despite reporting five-figure pre-tax profits from 1994 to 1997.	As a result of the losses acquired when the new company was incorporated, as well as further losses incurred between 1990 and 1993, the company paid no tax throughout its entire lifespan, despite reporting five-figure pre-tax profits from 1994 to 1997.
The Lawnstone Group’s 1990 accounts note that “a subsidiary had corporation tax losses of approximately £178,000 available to be carried forward for set off against future profits”. The company never paid tax, but did claim £1,638 back from the government in 1991 for an overpayment of tax before Amber Rudd took over the company.	The Lawnstone Group’s 1990 accounts note that “a subsidiary had corporation tax losses of approximately £178,000 available to be carried forward for set off against future profits”. The company never paid tax, but did claim £1,638 back from the government in 1991 for an overpayment of tax before Amber Rudd took over the company.
Spector, who was not involved at the time, said that the company had been structured so as to avoid large tax bills by offsetting a “big deal” that had “gone very sour” against future profits.	Spector, who was not involved at the time, said that the company had been structured so as to avoid large tax bills by offsetting a “big deal” that had “gone very sour” against future profits.
“They were trying to structure it so they could actually utilise the losses,” he said. “There was a deal that had gone wrong, before I got involved so they were trying to structure it so they could utilise it against some of the things that were succeeding.”	“They were trying to structure it so they could actually utilise the losses,” he said. “There was a deal that had gone wrong, before I got involved so they were trying to structure it so they could utilise it against some of the things that were succeeding.”
Amber Rudd and the Kensington Square connection	Amber Rudd and the Kensington Square connection
There are several houses currently for sale on Kensington Square.	There are several houses currently for sale on Kensington Square.
A four-bedroom house is priced at £6.75m, with the estate agent praising the view over “one of London’s most beautiful and exclusive garden squares”.	A four-bedroom house is priced at £6.75m, with the estate agent praising the view over “one of London’s most beautiful and exclusive garden squares”.
Another Grade II house “moments from stylish Kensington High Street” is on the market for £7m.	Another Grade II house “moments from stylish Kensington High Street” is on the market for £7m.
It was in these exclusive surroundings the home secretary took her first steps in a business career that is now raising questions about her life before she entered parliament six years ago.	It was in these exclusive surroundings the home secretary took her first steps in a business career that is now raising questions about her life before she entered parliament six years ago.
Central to the questions is her relationship with her father, the former stockbroker Tony Rudd.	Central to the questions is her relationship with her father, the former stockbroker Tony Rudd.
It is unusual to have been involved in one DTI investigation. Perhaps uniquely, Tony Rudd was involved in three.	It is unusual to have been involved in one DTI investigation. Perhaps uniquely, Tony Rudd was involved in three.
In the run-up to major changes to the City in the 1980s, his stockbroking firm Rowe Rudd decided to take over a small investment trust called the Greenbank Trust. To do this, he set up a company called Malton, which would acquire Greenbank.	In the run-up to major changes to the City in the 1980s, his stockbroking firm Rowe Rudd decided to take over a small investment trust called the Greenbank Trust. To do this, he set up a company called Malton, which would acquire Greenbank.
The takeover was a disaster. Within just a few months, Greenbank, Rowe Rudd and Malton’s finances were precariously intertwined. Greenbank’s assets were stripped, and the DTI stepped in.	The takeover was a disaster. Within just a few months, Greenbank, Rowe Rudd and Malton’s finances were precariously intertwined. Greenbank’s assets were stripped, and the DTI stepped in.
The DTI’s report on Greenbank reveals serious issues in the management of the company.	The DTI’s report on Greenbank reveals serious issues in the management of the company.
At one point, in order to remove debt from Rowe Rudd’s balance sheet, 58 shares in another company were revalued. Despite having been valued at 10p each originally, the shares were re-priced at £10,000. The DTI report says this was “clearly designed to ensure there was no indebtedness” in Rowe Rudd.	At one point, in order to remove debt from Rowe Rudd’s balance sheet, 58 shares in another company were revalued. Despite having been valued at 10p each originally, the shares were re-priced at £10,000. The DTI report says this was “clearly designed to ensure there was no indebtedness” in Rowe Rudd.
“They were then transferred for £580,000,” notes the report. “This converted a debit balance of £360,000 in the books of Rowe Rudd & Co into a credit balance.”	“They were then transferred for £580,000,” notes the report. “This converted a debit balance of £360,000 in the books of Rowe Rudd & Co into a credit balance.”
On another occasion, Rowe Rudd carried out a series of trades for a Swiss company called Glenlyon – although no one at Rowe Rudd appeared to know who or what Glenlyon was.	On another occasion, Rowe Rudd carried out a series of trades for a Swiss company called Glenlyon – although no one at Rowe Rudd appeared to know who or what Glenlyon was.
One of the Rowe Rudd partners told the DTI that Glenlyon was “a client of Tony Rudd’s”, but was unable to provide any further information. Rudd’s solicitors eventually provided an address for Glenlyon in Geneva.	One of the Rowe Rudd partners told the DTI that Glenlyon was “a client of Tony Rudd’s”, but was unable to provide any further information. Rudd’s solicitors eventually provided an address for Glenlyon in Geneva.
The DTI inspectors noted: “We wrote to Glenlyon Trading SA at this address; the letter was returned marked ‘inconnu’. We caused inquiries to be made in Switzerland for the years 1981-1983. From these inquiries it appears that no Glenlyon Trading SA or similar named organisation had traded from that or any other address in Switzerland in that period nor was any such company registered in Switzerland.”	The DTI inspectors noted: “We wrote to Glenlyon Trading SA at this address; the letter was returned marked ‘inconnu’. We caused inquiries to be made in Switzerland for the years 1981-1983. From these inquiries it appears that no Glenlyon Trading SA or similar named organisation had traded from that or any other address in Switzerland in that period nor was any such company registered in Switzerland.”
Rowe Rudd’s share structure was so complicated that when DTI inspectors asked who was managing the company, “the answer we received was that Mr Rudd has been running” the company “despite not knowing who owned the company”.	Rowe Rudd’s share structure was so complicated that when DTI inspectors asked who was managing the company, “the answer we received was that Mr Rudd has been running” the company “despite not knowing who owned the company”.
At one point, Tony Rudd’s colleague admitted to inspectors: “I have actually spoken to one or two chums and it would appear there has been a breach [of company law].”	At one point, Tony Rudd’s colleague admitted to inspectors: “I have actually spoken to one or two chums and it would appear there has been a breach [of company law].”